The Government of Australia announced double the maximum administrative penalties that can be applied by the Commissioner of Taxation to large companies that enter into tax avoidance and profit shifting schemes. The increased penalties, under Schedule 1 to the Taxation Administration Act 1953, would help to deter tax avoidance and applicable for income years commencing on or after 1 July 2015. This measure is estimated to have an unquantifiable gain to revenue over the forward estimates period.
Penalties will not change for taxpayers who have a ‘reasonably arguable’ tax position, as defined under Schedule 1. This measure will apply to companies with global revenue of $1 billion or more.
